Ministry of Trade Records 75 Per Cent of Cooking Oil Producers Meet DMO Obligations

The Ministry of Trade (Kemendag) has reported that the realisation of domestic market obligation (DMO) supplies for cooking oil to state-owned food enterprises has reached 42 per cent since the implementation of Trade Minister Regulation (Permendag) No. 43 of 2025.

At a regional inflation control meeting in Jakarta on Monday, 16 March 2026, Nawandaru Dwi Putra, Director of Domestic Market Development at Kemendag, stated that this achievement has surpassed the minimum threshold of 35 per cent.

According to him, the achievement demonstrates the commitment of cooking oil producers in meeting supply obligations for domestic needs, particularly for state-owned enterprises implementing government food programmes.

“For DMO realisation to D1, primarily state-owned enterprises, it has been recorded since the implementation of Permendag 43 at 42 per cent. This means it is above the target of a minimum 35 per cent,” said Nawandaru.

He explained that between January and February, there had been some pressure on distribution realisation as producers and state-owned enterprises were still in a transition period adjusting their business-to-business (B2B) cooperation arrangements.

Nevertheless, government support through allocation to cooking oil producers was considered beneficial in increasing supplies to food state-owned enterprises.

Such support included correspondence from the Minister of Agriculture and the Head of the National Food Agency encouraging producers to increase supply distribution to support food assistance programmes.

Kemendag has also recorded that approximately 75 per cent of cooking oil producers have met the minimum DMO threshold of 35 per cent. Meanwhile, approximately 25 per cent of other producers are expected to comply with the requirement by March 2026.

Nawandaru conveyed that smooth distribution of cooking oil also requires active participation from producers and state-owned enterprises through direct cooperation between business actors.